GoPro's shares plummet 10.3% as investor focus returns to weak fundamentals.

GoPro shares fell 10.3% after a recent meme-stock rally faded, highlighting the company's weak fundamentals, including declining revenues, shrinking gross margins, and negative profitability metrics. The stock's volatility has been significant, with 58 moves greater than 5% over the last year. Despite a 19.5% gain this year, it is still 20.3% below its 52-week high.

GoPro (NASDAQ:GPRO) shares fell 10.3% in the morning session on July 2, 2025, after investor sentiment shifted back to the company's weak fundamentals following a recent, short-lived meme-stock rally [1]. The decline followed a significant, speculative rally in the prior week that was largely attributed to the stock's status as a "meme stock" rather than any positive business developments. Once the short-term enthusiasm faded, investor focus appeared to shift back to the company's challenging financial situation. Reports highlighted GoPro's weak fundamentals, including declining revenues, shrinking gross margins, and negative profitability metrics like EBITDA. Concerns were also raised about a drop in subscribers, which undermined the company's pivot to a recurring revenue model and brought its long-term financial health and liquidity into question [1].

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy GoPro? Access our full analysis report here, it’s free [1].

GoPro’s shares are extremely volatile and have had 58 moves greater than 5% over the last year. But moves this big are rare even for GoPro and indicate this news significantly impacted the market’s perception of the business [1]. The previous big move we wrote about was 1 day ago when the stock dropped 6.6% as recent speculative rally, fueled by its newfound status as a 'meme stock,' appeared to lose momentum. This decline followed a period of intense volatility for the action-camera maker. The stock had been labeled a 'meme stock'—a term for shares that gained popularity with retail investors, leading to price movements often disconnected from a company's financial performance. In the days prior, GoPro's stock had surged by as much as 98% in just four trading days, a rally that occurred without any positive company-specific news [1].

GoPro is up 19.5% since the beginning of the year, but at $1.32 per share, it is still trading 20.3% below its 52-week high of $1.65 from November 2024. Investors who bought $1,000 worth of GoPro’s shares 5 years ago would now be looking at an investment worth $251.92 [1].

References:
[1] https://stockstory.org/us/stocks/nasdaq/gpro/news/why-up-down/why-gopro-gpro-shares-are-getting-obliterated-today-2
[2] https://seekingalpha.com/article/4805126-gopro-a-dead-cat-bounce-as-subscribers-fall